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Life Insurance Planning Basics of Life Insurance LIC-Policy Terms
Life Insurance Planning
How To Plan?    
Step 1
Step 2
Step 3
 
Evaluate your life insurance needs

Life Insurance is one of the most popular savings/ investment vehicles in India. Ironically, its probably the least understood too.
An insurance policy offers much more than just tax planning and investment returns. It offers you the ability to plan for unforeseen events that could affect your family's financial profile adversely.
  Factors to consider
Your financial profile and needs are different from that of your neighbour. And the same is true for your insurance needs.

However, irrespective of the differences, the number of dependents you have and their financial needs are the most important factors to consider.

Issues to consider while evaluating the above factors include:
  the wealth, income and expense levels of your dependents,
  their significant foreseeable expenses,
  the inheritance you would leave them, and
  the lifestyle you want to provide for them.
  How much insurance do you need?
Obviously the above factors mean nothing to the insurance planning process unless they are quantified.

Globally, the time-tested approach used by insurance and financial planners is the capital needs analysis method. Our Are You Adequately Insured planning tool, based on this approach, will help you arrive at how much insurance you need.
  When should you re-evaluate?
Whenever any of the factors discussed above change.
In Step 2, Understand the key concepts underlying life insurance.
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